The large sell-off of stocks and bonds continued on Thursday as the drums of hardening by central banks broke, and the shutdowns in China increased investor tension, while the dollar jumped.
Global stock index hit a six-week low, with Nasdaq 100 futures falling more than 1%.This is partly due to the fall in chipmaker Nvidia Corp. after warning that new rules banning the export of AI chips to China could lead to a fall in sales.
And on the level of global bonds, which are experiencing turmoil , The two-year Treasury yield reached 3.50% for the first time since 2007. Oil tumbled as expectations of continued monetary tightening and a slowdown in China weakened demand expectations. Gold and silver prices fell to a two-year low. Commodity-linked currencies and G-10 currencies fell, while the yen fell to a 24-year low.
Stocks enter a month that is often bad for returns after losses made during August. The rebound in stocks from June lows fades as the bet on the US Federal Reserve eases the rate hike eases. Meanwhile, the global bond market is approaching its first bear market in a generation.
